1.1.08

Rumored serious problem of Citibank Credit Card

My officemates and I were in a car going back to our office after having lunch out when one of our senior analysts warned us about Citibank credit card in the Philippines. She said that the local Citibank credit card is experiencing data security problem and the company is seriously losing large sum of money. I cannot almost believe in what she said because the Citibank Group is one of the most respected companies in the world. However, the rests of my officemates were not shocked about this story and it seems like they were long-time aware of the Citibank problem.

They claimed there were already cases wherein some people had received a Citibank credit card but the information that they were using was the identity of other persons. Usually they were using the identity of managers and executives of various well-known companies in the Philippines. Then, the Citibank data theft will only be discovered when the false person didn’t pay anymore the Citibank credit card bills and the Citibank agents will start contacting the real person whom the theft claimed to be him or her.

Some of my officemates said that this Citibank data theft problem in the Philippines was already been featured in XXX, a Saturday night public service show of ABS-CBN channel 2. However, I am not watching XXX and I am not a Citibank card holder therefore I am not aware of this problem. They also said that Citibank had already made an announcement confirming that the data theft problem happened in their company. However, when I went to Citibank website and research in the internet I haven’t found any information about this issue. With that, even if my officemates were very credible source of information I will still temporarily mark this story as rumored.

According to my boss who is a former Microsoft employee, the Citibank data theft might not be due to system hacking. It is only a mere inside job problem at Citibank with regards to false encoding of information into their system or it might also possibly that their employees haven’t carefully verified the applications of the false persons. I didn’t know if Citibank call center agents should also be blamed with the Citibank data theft problem. But most of us feel that the problem should only be isolated with one or two departments that take care of data encoding into the system and it might not directly include the Citibank call center agents.

We are not Citibankers therefore we couldn’t confirm how terrible this issue is. However, according to the rumored that one of my officemates knew, the Citibank N.A. Philippine local credit card division might already close. It is because they had huge number of bad debts plus they were continuously experiencing uncontrollable data theft problems. The local Citibank credit card group (not the Citibank call center) is already facing serious financial difficulty therefore if the company cannot resolved their collection and data theft problem, the division might be sold to other local credit card companies in the Philippines.

13 comments:

  1. Thanks a lot for stopping by and for the greetings! Happy New year to u and ur family too! God bless!

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  2. Happy New Year!!

    i think may nakita akong episode sa XXX about bank.. but di naman na reveal ang bank name.

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  3. I got two Citibank CC of my own and I just wish that the maxed-out dues will magically disappear. Lolz.

    Anyways, wishing you happiness and prosperity in 2008. Happy New Year.

    GOD BLESS. 2007 Was great.

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  4. Maybe thats the reason why Im unable to login to my citibank access online.... :(

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  5. thanks for the info,
    i am a citibank card credit holder,
    will check my accounts often and be more alert.
    God bless u.

    http://lovecasey988.blogspot.com/

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  6. thanks for the info,
    i am a citibank card credit holder,
    will check my accounts often and be more alert.
    God bless u.

    http://lovecasey988.blogspot.com/

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  7. Credit card theft is really a problem anywhere in the world. You can not be 100% protected no matter what credit card you have a CitiBank card or one from American Express

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  8. Well, those problems CitiBank is having don't seem like real problems to me. Recentaly CitiBank has launched a huge campaign to promote credit cards for consumers. Even if they have problems in the States...well, they can go East

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  9. hi, i am a citibank card holder and i am working as a fraud investigator in one of the largest banks in the US(not citi)credit card theft is a serious problem not only with citibank but with other banks in the world. in the philippines, i have not encountered this.ID theft in the philippines is almost impossible because we dont have a central credit bureau,no database of all of your account information is available.the credit card application process in the philippines is so strict only a few people has credit cards,unlike in the US where even the guards have creditcards.aside from that, top executives of major companies get their credit cards by invitation, they dont apply for one.the usual victims of ID thefts were the regular people.

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  10. I would not be surprised. Have you seen this information that came out about the Corporate Governance Officer of MPIC for six years who is now a VP at another company. This is something that need to be investigate if Manny is going to run for President:

    Manny Pangilinan also assured that Nugent would receive contracts from the family of companies that are part of the First Pacific family including First Pacific Company Limited, Metro Pacific Investments, Philippine Long Distance Telephone, Smart Communications or Indofood, thus a position as Vice President for New Business was a perfect transition for Nugent. It is disappointing that based on Pangilinan's many interviews touting corporate reform that he would act in a way that could raise questions about his commitment to the reforms that he favors. It is also disappointing that a man with Pangilinan's resources as well as a top advertising agency, Saatchi & Saatchi, would not do a cursory background check prior to the appointment of a high ranking official as David Nugent was for six years at First Pacific and now as a Vice President (promoted within 60 days of arrival at the firm from Director) of Ace Saatchi & Saatchi. While I understand titles are different in certain financial services industries (like broketrage firms), the responsibilities are much more significant within both of the companies where Nugent works and has worked.
    The attachments will prove that Nugent is a fraud and thief based and that he should never have been trusted to be overseeing corporate compliance governance, investor relations, media affairs and corporate communications for six years and now on the executive team of Ace Saatchi & Saatchi.
    The attachments include documents proving:
    1. David S. C. Nugent owes the U.S. Department of Education more than US$34,000 in student loans, from which he did not make one payment to date.
    3. Nugent owes US$3,000 to various creditors including Pacific Gas & Electric and collection companies for Sprint mobile phone service and Providian credit card which he defaulted on after arriving in the Philippines.
    4. Nugent was cited for criminal check fraud by the District Attorney of Santa Cruz, CA USA, and a warrant for his arrest was about to be ordered.
    5. Nugent never graduated from American University and does not have a Bachelor of Political Science as he also claims in documents he signed and submitted to the Philippine Stock Exchange and used by First Pacific Company Limited of Hong Kong and attached to other documents on the NYSE SEC. American University can verify that he never graduated from the college or you may go to their website at http://www.american.edu and attempt to search in the Alumni Directory or American University may be reached at 202-885-1000.
    Documents reveal that David S.C. Nugent had a U.S. Passport and it is my allegation based on personal knowledge that Nugent did not possess a Philippine passport until at least August 29, 2003, with passage of the Citizenship Reclamation Act of 2003. I cannot prove this although I have e-mails from Nugent asking me to wire him fees for “documentation” and he has stated in other e-mails that he was still collecting unemployment benefits from the State of New York while first living in the Philippines in 2001 and using a credit card that he later defaulted on while in Makati City, PH.

    I lived in Makati on Wok Wok Road for about a year. Citibank has its ownissues have you seen the U.S. investigation of Wachovia

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  11. While off the topic, this guy seems interesting. I also saw him on Friendster. I know that Nugent and Ipe Cruz are part of that silly "Gucci Gang." Citiban sucks, I like the Bank of the Philippine Islands!!! Who is David Nugent?

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  12. I, Jason Lowen, did not post the above paasage taken from his free website at www.davidcnugent.com although I am pleased with the results as the silence about Nugent's crimes will not be repprted by your business editors in Makati. While Nugent may be upfront about his life at Ace Saatchi & Saatchi where he serves as VP of New Business, as he was promoted by the Ace Chairman on December 7, 2007 (within 60 days of being brought on as a Director) I am interested in the reputation of the Philippines having stayed at the Makati Shangri-La for about 10 dyas in 2003. I have put much time and research into this project as, even though I have NO financial interests in the Philippines, I care aboiut the people and the growth of the middle class. You may contact me at jason@davidcnugent.com Thank you.

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